Latest News

Back to Latest News back

 

Federal Government rejects call for national event insurance scheme

Federal Government rejects call for national event insurance scheme
November 22, 2021

The Federal Government has rejected recommendations from a Senate committee inquiry that called for a national insurance guarantee to protect events cancelled by COVID-19 restrictions.

Tabled in Federal Parliament on Friday, the inquiry, from a committee led by the Greens and Labor, explored the feasibility of a Federal Government backed insurance scheme for the performing arts sector.

The inquiry was called after Senator Sarah Hanson-Young announced the Greens’ intention to introduce a private member’s bill calling for a government-run insurance guarantee to future-proof the industry.

However, while three Coalition Senators voted in favour of the recommendation, the Federal Government released a report recommending the bill not be supported because it would require the Federal Government to provide insurance against state government actions such as public health orders that would necessitate the cancellation of an event.

The report argued that cancellation insurance schemes are the sole responsibility of states and territories, adding that the performing arts sector had already received “significant funding” from all levels of government and has “shown the capacity to recover”.

The Department of Prime Minister and Cabinet stated that market failure alone is not an argument for government intervention, particularly “if the failure does not have a material impact on the functioning of the wider market.

“But in the event of a market distortion leading to inefficient or inequitable outcomes, the cost of intervention may be justified.”

A spokesperson Federal Arts and Communications Minister, Paul Fletcher told The Guardian “as we have consistently said, it is decisions by state government health authorities which trigger the business losses faced by producers of arts and entertainment events

“Therefore, it is state governments which are best placed to provide cover against this kind of risk.”

John Watson, representing the music copyright agency Apra Amcos and Eleven Music, had earlier told the committee the live performance industry needed a national approach because touring was national.

Watson stated “the restrictions might be state-based [but] it doesn’t really help if you can go ahead with your gig in NSW but your drummer can’t get in from Victoria or Queensland,” he said.

Live Performance Australia Chief Executive, Evelyn Richardson told the committee that pre-Covid, the costs of insurance premiums against cancellations were already significant, ranging from $50,000 for a modest commercial theatre production to $750,000 for a major concert tour or festival.

She noted “the inability to insure (against Covid) is a major market failure, and there is a role for governments to intervene.”

Image: COVID-19 shutdowns have seen Byron Bay’s Bluesfest cancelled for two years in a row.

Related Articles

18th November 2021 - Risk management the key to way out of attractions industry’s insurance crisis

16th November 2021 - EVANZ announce new insurance partnership to benefit members

14th November 2021 - Victorian Government reveals event insurance scheme in move to revive live music

9th November 2021 - New Zealand government launches insurance scheme for major summer festivals

8th November 2021 - Federal Opposition gets behind events industry’s call for cancellation insurance scheme

25th October 2021 - AALARA urges members to respond to Australian Small Business Ombudsman’s insurance crisis interim report

21st October 2021 - LPA calls for insurance and wage support in wake of industry revenue loss of $1.4 billion

20th October 2021 - Ombudsman’s insurance crisis report says ‘the show must go on’

15th October 2021 - Live music sector continues call for national event insurance scheme

8th October 2021 - Federal Court rules against business interruption insurance policy holders in test case on Coronavirus payouts

11th August 2021 - Australian live entertainment groups call for federal insurance guarantee

7th July 2021 - Public liability insurance crisis further impacting Queensland country shows

2nd April 2021 - Save Victorian Events highlight Bluesfest cancellation as confirmation of need for Governments to back event cancellation insurance

16th November 2020 - Industry operators impacted by rising insurance premiums

15th November 2021 - Live Performance Australia calls for NSW Government to replicate Victoria’s backing for live entertainment

9th November 2021 - Live performance set to return to the stage at Newcastle’s Civic Theatre

8th June 2021 - LPA calls on Victorian Government to lift venue density restrictions

1st April 2021 - LPA calls for emergency Business Interruption Fund after government directive shuts down Bluesfest

17th March 2020 - LPA calls for $850 million live performance support and stimulus package

18th October 2021 - COVID impact sees Australian Government fund live music sector and leading arts organisations

4th May 2021 - Inconsistent capacity rules between entertainment and sport inflict further damage on live music

23rd October 2020 - Survey shows over 400 Australian Live Music Businesses face imminent closure

23rd September 2021 - Uneven path to return of live entertainment in Melbourne and Sydney

8th July 2021 - VMA says Australia getting vaccinated is the key to live entertainment industry’s road to recovery

25th March 2021 - Federal Government announces $135 million in funding for live entertainment

19th March 2021 - Live Performance Australia calls for 100% capacity in all live entertainment venues

24th September 2021 - Arts Minister cites $10 billion in Federal Government pandemic support for the creative sector

31st August 2021 - Opera Australia to receive more emergency monies from Federal Arts Sustainability Fund

26th July 2021 - New research shows that Australian arts and culture will need a ‘total reboot’ after COVID

23rd October 2021 - Tribunal orders Bluesfest to pay 75% refund to stallholders over cancelled 2020 event

18th August 2021 - No Bluesfest Festival for 2021, as event reschedules to Easter 2022


Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

State Wide Pool Services

Known as Hydrilla since September 2020 - see www.ausleisure.com.au/suppliers/hydrilla-pty-ltd

read more

Aquatics

 
 

Intelligenz Solutions

Intelligenz provides Leisure Management Software for managing all your Program Registrations, Facility Bookings, Membership Sales and POS Transactions; including detailed Reporting, automated…

read more

Access / Billing / Finance / Marketing / Technology

 
 

Digonex

Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…

read more

Attractions / Entertainment / Sport / Technology / Ticketing

 
 

TicketSearch Pty Ltd

TicketSearch is focused on providing businesses, organisations, and venues with affordable, efficient, and powerful self-managed ticketing solutions. The organisation has offices in Australia, New…

read more

Attractions / Entertainment / Technology / Ticketing / Venues

 
 

AMPD Academy

Originally founded to meet the specific training requirements of its own venue management operations, Ampd Academy now embraces a broader mission to combat skill shortages across Australian…

read more

Aquatics / Attractions / Education / Recreation / Safety

 
 

Enta Australasia

As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd.  Click here to view the VIVATICKET Pty Ltd listing.  19th July 2018 - ENTA…

read more

Technology / Ticketing / Venues

 
 

SLE WORLDWIDE AUSTRALIA PTY LTD

SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…

read more

Insurance / Venues

 
 

COMMERCIAL AQUATICS AUSTRALIA

Commercial Aquatics Australia provides aquatic solutions nationwide and is one of the largest and most experienced companies specialising in the design, construction, renovation, service, maintenance…

read more

Aquatics / Design / Play / Waterparks

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business